Thinking about buying or renting out a place in Kingston for short stays? The rules changed recently, and the City now limits certain permits while requiring registration, inspections and taxes. If you want to stay compliant and protect your investment, you need a clear roadmap. In this guide, you’ll learn what’s allowed, which permits exist, how the cap works, the taxes you must plan for and practical steps whether you’re buying, selling or hosting. Let’s dive in.
Kingston’s STR rules at a glance
- Kingston’s updated form-based zoning code took effect August 2, 2023 and set today’s short-term rental (STR) standards. You can review the City’s overview in the official STR fact sheet and code resources. (City STR Fact Sheet, Form-based code)
- The City issues three permit types. Only the full, unhosted permit type has a cap.
- Listing platforms must display your City registration number, and you need a permit before you advertise.
Permit types: what’s allowed
STR-F: Full-unit, unhosted
- Entire dwelling rented short term with no owner or resident on site.
- Allowed only in higher-density transect zones T4 and T5.
- Subject to a City cap set at 1% of housing units. The City set this at 106 permits, and it reported the cap was reached on March 4, 2024. (City STR Fact Sheet)
STR-RO: Resident-occupied (hosted)
- You live in the home and rent a portion, like a spare bedroom.
- Allowed citywide with no cap. (City STR Fact Sheet)
STR-L: Limited use
- Entire dwelling rented short term for fewer than 30 days per calendar year.
- Allowed citywide with no cap. (City STR Fact Sheet)
Key zoning and use limits
- Only one STR is allowed per lot. Accessory dwelling units are not allowed to operate as STRs. (City code §405-21)
- Occupancy is limited to two guests per bedroom and a maximum of six guests per dwelling. Children 10 and under are not counted toward the limit. (City code §405-21)
- If a property legally operated as an STR before the code was adopted and met specific historic tax-payment conditions, it may be allowed to continue until abandonment, change of ownership or revocation. Verify status before you buy or sell. (City code §405-21)
How the cap works for full-unit STRs
- The cap for STR-F permits is 1% of Kingston’s housing stock. The City published a cap of 106 permits, and noted it was reached on March 4, 2024. New STR-F permits are not issued once the cap is reached. Check the City portal for current availability and options. (City STR Fact Sheet, City housing/STR page)
Getting permitted: steps, fees and inspections
- Apply online. Kingston uses an online portal for all applications, renewals and the public registry. Start with the City’s portal FAQs for the process and links. (Portal FAQs)
- Pay the annual fee and schedule inspection. The Building Safety Department inspects before approval and then conducts periodic inspections, generally every two years. (Portal FAQs)
- Post your registration number. Your City-issued number must appear on every listing and advertisement. (City STR Fact Sheet)
Fees published by the City for 2024:
- STR-F: $650 per year
- STR-RO: $125 per year
- STR-L: $125 per year Refer to the City’s fact sheet or portal for the latest fee schedule. (City STR Fact Sheet)
Taxes: Ulster County and New York State
- Ulster County occupancy tax. STRs are subject to the County’s Hotel & Motel Room Occupancy Tax at 4% for stays beginning on or after February 1, 2024. You must register with the County and file returns. Some platforms may collect, but you are still responsible for registration and filings. (Ulster County tax guidance)
- State registry and sales tax. New York enacted a statewide STR registry law that also aligns tax treatment for STRs. State and local sales tax apply to STR unit occupancy beginning March 1, 2025. Register with the NY Department of Taxation and Finance for a Certificate of Authority if required. (NYS registry announcement, NYS STR sales tax guidance, How to register for NY sales tax)
What buyers should verify
- Address zoning and permit type. Confirm whether the property is in T4 or T5 if you hope to operate a full-unit STR and whether any STR-F permit is available or already in place. (City STR Fact Sheet)
- Grandfathering status. If the property has a history of legal STR use, ask for documentation and verify with the City whether the use can continue and whether any approval is transferable. (City code §405-21)
- Condo or HOA rules. Private bylaws can prohibit STRs even if the City allows them. Review governing documents and insurance requirements.
What sellers should gather
- Existing STR permit and inspection records.
- Proof of County/State tax registrations and filings.
- Any City correspondence about compliance or complaints. Buyers will ask, and clean documentation builds trust. You can also point them to the City’s STR resources. (City housing/STR page)
Enforcement and penalties
- Operating or advertising without a permit is a code violation. The City’s fact sheet lists escalating fines per day of noncompliance, for example: first instance $1,000, second $5,000, third and subsequent $7,500. Each night booked can be a separate offense. (City STR Fact Sheet)
- The City investigates complaints, conducts inspections and can revoke permits. With the State registry and platform reporting, unregistered listings are more visible and may be removed by platforms. (City housing/STR page, NYS registry announcement)
Quick checklist to stay compliant
- Confirm the property’s transect zone and whether STR-F is allowed for your address.
- Choose the correct permit type and apply online before advertising.
- Complete the City inspection and post your registration number in every listing.
- Register for Ulster County occupancy tax and file returns at 4%.
- Register with NYS for sales tax if required and prepare for March 1, 2025 changes.
- Follow guest occupancy limits and one-STR-per-lot rules.
- Review HOA or condo bylaws and insurance.
Ready to align your plans with Kingston’s rules or explore alternatives across the Hudson Valley? Get local, step-by-step guidance on neighborhoods, valuations and contract strategy with the Carol Mahoney Team Inc.
FAQs
Do Kingston STR hosts need a permit before listing their property?
- Yes. Kingston requires you to register and include your City-issued STR number in every advertisement and listing before you rent. (City STR Fact Sheet)
Are accessory dwelling units (ADUs) allowed as short-term rentals in Kingston?
- No. ADUs are expressly prohibited from STR use under the City’s code. (City code §405-21)
What is the cap on full-unit STR permits in Kingston and is it currently reached?
- The cap is 1% of Kingston’s housing stock, set at 106 STR-F permits, and the City reported the cap was reached March 4, 2024. (City STR Fact Sheet)
What guest limits apply to Kingston short-term rentals?
- Kingston limits occupancy to two guests per bedroom and a maximum of six guests per dwelling, with children 10 and under not counted. (City code §405-21)
What taxes do Kingston STR hosts need to handle in Ulster County and New York State?
- Ulster County imposes a 4% occupancy tax, and New York State applies sales tax to STR occupancy starting March 1, 2025. Registration may be required with both jurisdictions. (Ulster County tax guidance, NYS STR sales tax guidance)
